A new idea to solve the US debt problem

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djstrodl's picture
djstrodl
Status: Member (Offline)
Joined: Jan 30 2009
Posts: 7
A new idea to solve the US debt problem

There have been two solutions put forward by economists for the US to get out of its horrendous debt problem, hyperinflate the debt away or default on the debt.

There is a third choice that is simple, effective and painless:

The US buys up all available gold in the world, which would cause the price of gold to skyrocket ($1,000,000,000 an ounce?).

When all available gold is gone, the US confiscates their citizens gold and pays for it with new skyrocket prices. The US is already the worlds largest holder of gold, with this new purchase programme they will dominate gold reserves. 

Then they announce that the US is going back on the gold standard, the dollar will once again be backed by gold. And just for good luck they revalue gold (like they did in 1934) to say, $100,000,000,000 an ounce).

Problem solved.

 

 

aggrivated's picture
aggrivated
Status: Platinum Member (Offline)
Joined: Sep 22 2010
Posts: 527
Re: A new idea to solve the US debt problem

Now, why would the government do something that logical?

Here's another solution, very similar.  Supposedly the US has gold now.  Over the next two years the US starts taking gold for legal payment of debts(legal tender) and continues to mint silver and gold coins for that purpose.  The only catch is that the coins will not have a face value.  This will let the price of PM's find their own level.  With our current instant ability to access market values over the internet, the public could with an IPhone ap or similar just check the $ to gold/silver oz rate for any purchase.  Once the banks start issuing gold for paychecks etc, then the public would be on board pronto. 

The only downside of this is that the government will lose its bottomless pool of ex nihilo money.  The radical idea of all of this is an accountable government!!!  Sounds a lot less likey than flying pigs.  Only when our international bankers (the bond markets and ultimately the FED) say 'no more loans buddy' will the government be up against the wall.  At least the pig will squeal at that point, but it won't be pretty.

 

mooselick7's picture
mooselick7
Status: Silver Member (Offline)
Joined: Jan 22 2009
Posts: 192
Re: A new idea to solve the US debt problem

Assuming that the US still has gold reserves...

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: A new idea to solve the US debt problem

Wouldn't it just be easier to create money without debt?

Carl Veritas's picture
Carl Veritas
Status: Gold Member (Offline)
Joined: Oct 23 2008
Posts: 294
Re: A new idea to solve the US debt problem

Wether it be gold, silver, or paper money,

Free competition for currency  would deter  manipulation, by anyone, specially governments.  

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